Morgan Stanley CEO: ‘Highly Unlikely’ to See Breakup of Big Banks

Morgan Stanley Chairman and Chief Executive James Gorman said it’s “highly unlikely” the U.S. government would sponsor a breakup of the big banks, though he expects to see more consolidation among regional institutions as they struggle to meet higher costs.

Speaking with reporters at a securities industry conference, Mr. Gorman said “most people think banks are going to get smaller, but I think a lot of the small banks are going to get bigger.”

He said those firms, if they wish to expand beyond their natural geographies, will seek mergers or acquisitions as an alternative as they face the “increasing regulatory costs of doing business in this country, the costs of being a national institution, and rising technology costs.”

Comments (4 of 4)

It's very important to keep the big banks big and allow them to grow even bigger.

That way the politicians don't have to work as hard to shake down their targets for graft, corruption and campaign contributions. And, it's far easier for crony capitalism and corporatism to thrive if there are fewer players in the game.

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